House Bill No. introduced by J. Fitzpatrick establishes that in residential home construction contracts, an accepted bid represents the total amount to be paid unless the parties agree otherwise. The bill specifies that any bid based on time and materials must be documented in writing. It also clarifies that a residential home construction contract cannot be classified as a time and materials contract unless there is a written agreement between the parties. The definition of a time and materials contract is provided, indicating that it involves payment based on the actual costs of materials and labor until the construction is completed.

Additionally, the bill outlines exceptions to these rules, stating that the provisions do not apply if the parties have agreed in writing before the bid acceptance that the bid does not represent the final amount owed. It also allows for agreed-upon changes in the scope of work, material costs, or bids from subcontractors to be exempt from the bid amount stipulations. The new section is intended to be codified as part of Title 28, chapter 2 of the Montana Code.